DP20849 Fiscal stimulus plans and households’ expectations

Teona Gherasim

We examine the impact of large U.S. fiscal stimulus plans on households’ expectations. We propose a measure of public attention to fiscal news during the legislative process based on Google Trends data and investigate how households’ expectations react when public attention is at its peak. Our findings reveal that attention peaks when a plan is approved by Congress or signed into law by the President. On these dates, financially literate households significantly adjust their expectations:

din zilele anterioare